CE (European call option) and PE (European put option) are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset (such as a stock, commodity, or currency) at a specified price (strike price) on or before a specified date (expiration date).

A CE option gives the holder the right to buy the underlying asset at the strike price, while a PE option gives the holder the right to sell the underlying asset at the strike price. These options are called “European” because they can only be exercised on the expiration date, as opposed to “American” options which can be exercised at any time before the expiration date.

CE options are typically used when an investor believes the price of the underlying asset will increase, while PE options are used when an investor believes the price of the underlying asset will decrease.

how to easily remember them?

One way to easily remember what CE and PE options are is by associating the letters with their meanings:

• CE stands for “Call European” option, which gives the holder the right to “Call” (or buy) the underlying asset at the strike price.
• PE stands for “Put European” option, which gives the holder the right to “Put” (or sell) the underlying asset at the strike price.

Another way to remember the difference between CE and PE options is by thinking of it in terms of how they are used. CE options are typically used when an investor believes the price of the underlying asset will increase, while PE options are used when an investor believes the price of the underlying asset will decrease.

In summary:

• CE is for Call, and the right to buy
• PE is for Put, and the right to sell

“CE is for calling, the price is rising, PE is for putting, the price is falling.”